Welcome to MT140 Introduction to Management

Unit 3 Seminar – Planning

Tools for class tonight:

Sandwich Blitz Case study

Course Home Page

Units 2&3 Reading This seminar is being recorded

Agenda

Unit 2 ReviewUnit 3 – IntroductionDiscussion – Levels of PlanningAssignment - SWOT Analysis Brief review of case studyConclusion of Seminar

Unit 2 Review

• The Business is an Open System

• It receives inputs of resources from its environment

• It processes this input

• It produces output in the form of goods or services.

Unit 2 Review (Continued)

In the process, the business is changed by its environment and in turn, the environment is altered by the business.

External Environment – Made up of entities outside of the business.

Internal Environment – Made up of the business itself.

Macroenvironment – That part of the External environment specific to a particular business.

Any questions ?

Unit 3 Objectives

During this unit we will:

1. Identify the basic steps in any planning process.

2. Explain the relationship between strategic planning, tactical planning, and operational planning.

3. Interpret the elements of a basic SWOT analysis.

Let’s start with the basics!

• Businesses are usually started as a result of an individual’s or a group’s VISION.

• This vision represents a realistic but optimistic view of the future that is built on the work of today!

• This vision becomes documented in the firm’s Mission Statement that defines why the business exists and what it seeks to accomplish.

• To accomplish the firm’s mission, specific broad long-range and shorter-range targets are identified. These are the GOALS and OBJECTIVES of the firm. This is the process of PLANNING!

Let’s start with the basics! (Continued)

• The entire organization should have a strategic plan in support of the strategic goal(s) for the organization.

• Each successive level within the business organization will have a corresponding set of goals and objectives in support of the overall strategic goals.

• Goals and objectives can become outdated and no longer reflect reality within the business or within the external environment. While these are slow to change, they still should be reviewed by top management to ensure their relevance to the current environment.

Mission Statements• Disney’s Mission Statement: "The mission of The Walt Disney Company

is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."

• Starbuck’s Mission Statement: “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.”

• EBay’s Mission Statement: "eBay's mission is to provide a global trading platform where practically anyone can trade practically anything."

• Google’s Mission Statement: “to organize the world's information and make it universally accessible and useful.”

Key Concepts

• Planning is one of the four primary functions of management.

• Planning involves a systematic process of making decisions about goals and activities that will be carried out by individuals, groups, and the organization.

• Successful management depends on an accurate and thorough evaluation of the organization’s environment.

The Planning Process Step 1.Analyze the Situation Reading page 74 (3) Figure 4.1

• Situational Analysis: SWOT

• Step 1: Within the constraints of time and resources, gather, interpret and summarize all relevant information of the issue or problem at hand.

• Step 2: Examine past events, current conditions, and try to forecast future trends.

• Step 3: Within the context of the business as an open system, apply the analysis to the unit in question.

• Step 4: Examine the issue or problem within the context of the different environmental situations (External and Internal).

• Step 5: Produce an outcome that identifies and examines the assumptions, problems, and issues.

The Planning Process Step 2.Generate Alternative Goals and Plans

• Goals: The end the result the manager seeks. These must be:- Specific - Measurable- Attainable- Relevant- Time-bound

Plans: Specific actions or means the manager will use to achieve the goals.

Step 4.Select Goals and Plans

Step 3.Evaluate Goals and Plans

- What might be a good example of a management goal? Remember we want it to be:

- Specific - Measurable- Attainable- Relevant- Time-bound

The Planning Process Step 5.Implement the Goals and Plans

• Proper implementation is key to success. Good implementations assure that:

- All managers and employees understand the goals and plans and their roles in the implementation

- Managers and employees are sufficiently motivated to make it work

- Correctly linked to other systems and parts of the organization.

The Planning Process Step 6.Monitor and Control Performance

• Proper monitoring and control is essential for successful implementation.

• Actual performance of the new plans and goals must be measured against standards of expected performance.

• Corrective action must be taken to ensure performance or the measurement criteria must be readjusted.

• You may have noticed by now that the steps in the Planning Process look very much like POLC!

LEVELS OF MANAGEMENT page 78 (7) figure 4.2

• OPERATIONAL (front line)• TACTICAL (middle)• STRATEGIC (upper)

Scenario: In the global company FEDERAL EXPRESS, can you name a possible job title for each of these positions?

Levels of Planning and Goals

• Strategic Goals: Major long-term targets or results relating to the firm’s long-term survival, value, and growth. These are set by the firm’s highest level of management.

• Strategic Plans: Action plans to support the strategic goals. These usually cover the entire firm and are implemented by top management.

Levels of Planning and GoalsContinued

• Tactical Planning: Translates the broad strategic goals and plans into specific goals and plans usually for a specific area of the firm such as department or division. These often involve middle level management and are not as long-range as the strategic goals and plans.

Levels of Planning and GoalsContinued

• Operational Planning: Shorter-range plans that address specific procedures and processes to ensure success of the tactical goals and plans and in turn, success of the strategic goals and plans. This usually occurs at lower levels of the organization and often involves first-level managers (supervisors).

• All levels of planning must be consistent and in agreement to be successful! It is a hierarchical process!

Unit 3 Discussion

TOOLS necessary for a successful discussion:Unit 3 Reading AssignmentSandwich Blitz case study

Do you know where to find each?

Based upon the SB case study answer the following:

“what are some considerations that Dalman and Lei must have at each of the three levels (strategic, tactical, and operational) of planning for Sandwich Blitz, Inc? ********Be sure to address each of the three levels.”

Any questions ?

SWOT Analysis

• The SWOT Analysis is a useful strategic planning tool. It allows the user to visualize the strengths, weaknesses, opportunities and threats facing the business.

• Strengths and Weaknesses: Refer to internal resources of the firm; what the firm does especially well and in what areas the firm is weaker.

• Opportunities and Threats: Refer to those elements in the macroenvironment and the competitive environment that could represent a competitive opportunity or pose a competitive risk for the firm.

SWOT Analysis Illustrated:

Internal Strengths: Weaknesses:

External Opportunities: Threats:

Any questions ?

Unit 3 Homework Assignment:SWOT Analysis of Sandwich Blitz

What do you think are the strengths, weaknesses, opportunities, and threats (SWOT) that the business faces if Dalman and Lei commit to a large-scale expansion of their business?

Be sure to identify at least one strength, one weakness, one-opportunity, and one threat that apply to the scenario.

TYPICAL PARAGRAPH RULES

1. This assignment is a 100-200 word paragraph. No cover page, just a paragraph. 5 points off for every 50 words over…

2. Fully answer all questions and analyses.

3. Use proper business writing, I will help you if you need it. If you refer to any sources, you must cite them in your work.  Points off will be assessed depending on severity of your problem.

4. KEY TERMS: You must use strengths, weaknesses, opportunities, and threats in your paper. 5 points off for each one left out.

WRITING TIP: KISS!

keep it simple stupid

•Whenever you are writing a business paper and you are asked to define an acronym, such as SWOT, make sure you use the letter order to define. In other words, start with “strength” and end with “threat”. Don’t skip around…. KISS! 

•Don’t make your paper a mystery novel….make it easy for the reader to find the information!

Any questions ?

Thank You for Joining Me This Evening!

Good Night All!

See you next week!

After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.